Investing.com -- Lululemon Athletica lifted its full-year guidance Thursday after reporting better-than-expected third-quarter results and the apparel brand increased its stock buyback plan by $1 billion.
Lululemon Athletica Inc (NASDAQ:LULU) was up 8.7% in premarket trading following the report.
For the three months ended Oct. 27, Lululemon, the Canadian company known for its pricey leggings, reported earnings per share of $2.87 on revenue of $2.4 billion. Wall Street had anticipated EPS of $2.71 on revenue of $2.36B.
Comparable sales increased 4%, or 3% in constant dollar terms, underpinned by growth in international markets.
For Q4, the company expects diluted earnings per share in the range of $5.56 to $5.64 for the quarter on revenue of $3.48B to $3.51B, compared with Wall Street estimates for EPS of $5.6 on revenue of $3.5B.
For the full-year, the company said it now expected EPS in a range of $14.08 to $14.16 for the year, up from the prior $13.95 to $14.15 range, while net revenue was guidance to between $10.45B and $10.49B, up from the prior $10.38B and $10.48B.
The company said it approved a $1B increase to its stock repurchase program.
Wells Fargo (NYSE:WFC) said that Lululemon offered signs of stability in the third quarter, "with a comp/margin/EPS beat illustrating that management actions are beginning to work." While the bank notes that issues remain in North America, they believe that at current levels, "bulls will likely stay patient for an early 2025 inflection."
BofA believes LULU's "stabilizing sales and margin expansion should continue to drive the stock." The bank reiterated its Buy rating on the stock, raising the price target to $420 from $355 a share, adding: "LULU’s newness in 1H25 will accelerate sales growth."